Phil and Linda are 25-year-old newlyweds and file a joint tax return. Linda is covered by a retirement plan at work, but Phil is not. If an amount is zero, enter "0". a. Assuming Phil's wages were $27,000 and Linda's wages were $18,500 for 2021 and they had no other income, what is the maximum amount of their deduction for contributions to a traditional IRA for 2021? Phil Linda b. Assuming Phil's wages were $55,000 and Linda's wages were $71,000 for 2021 and they had no other income, what is the maximum amount of their deduction for contributions to a traditional IRA for 2021? Phil Linda

Phil and Linda are 25-year-old newlyweds and file a joint tax return. Linda is covered by a retirement plan at work, but Phil is not. If an amount is zero, enter "0". a. Assuming Phil's wages were $27,000 and Linda's wages were $18,500 for 2021 and they had no other income, what is the maximum amount of their deduction for contributions to a traditional IRA for 2021? Phil Linda b. Assuming Phil's wages were $55,000 and Linda's wages were $71,000 for 2021 and they had no other income, what is the maximum amount of their deduction for contributions to a traditional IRA for 2021? Phil Linda

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter13: Tax Credits And Payment Procedures

Section: Chapter Questions

Problem 19CE

See similar textbooks

Similar questions

LO.2 Belinda spent the last 60 days of 2019 in a nursing home. The cost of the services provided to her was 18,000 (300 per day). Medicare paid 8,500 toward the cost of her stay. Belinda also received 5,500 of benefits under a long-term care insurance policy she purchased. Assume that the Federal daily excludible amount is 370. What is the effect on Belindas gross income?
Individual Retirement Accounts (LO 5.3) Phil and Linda are 25-year-old newlyweds and file a joint tax return. Linda is covered by a retirement plan at work, but Phil is not. If an amount is zero, enter "0". a. Assuming Phil's wages were $27,000 and Linda's wages were $18,500 for 2018 and they had no other income, what is the maximum amount of their deductible contributions to a traditional IRA for 2018? Phil $ Linda $ b. Assuming Phil's wages were $53,000 and Linda's wages were $70,000 for 2018 and they had no other income, what is the maximum amount of their deductible contributions to a traditional IRA for 2018? Phil $ Linda $
Problem 5-3Individual Retirement Accounts (LO 5.3) Karen, 28 years old and a single taxpayer, has a salary of $35,000 and rental income of $33,000 for the 2021 calendar tax year. Karen is covered by a pension through her employer. AGI phase-out range for traditional IRA contributions for a single taxpayer who is an active plan participant is $66,000 – $76,000. Question Content Area a. What is the maximum amount that Karen may deduct for contributions to her traditional IRA for 2021?$fill in the blank abcab0f9afd1fe0_1 Question Content Area b. If Karen is a calendar year taxpayer and files her tax return on August 15, what is the last date on which she can make her contribution to the IRA and deduct it for 202
Subject - Acounting Problem 7-6Earned Income Credit (LO 7.2) Diane is a single taxpayer who qualifies for the earned income credit. Diane has two qualifying children who are 3 and 5 years old. During 2022, Diane's wages are $19,800 and she receives dividend income of $1,200. Number of Qualifying Children Other than joint filers Joint filers Phaseout Begins Phaseout Ends Phaseout Begins Phaseout Ends None $11,610 $21,430 $17,560 $27,380 1 19,520 42,158 25,470 48,108 2 19,520 47,915 25,470 53,865 3 or more 19,520 51,464 25,470 57,414 Calculate Diane's earned income credit $ Would you kindly assist and explain:) I'm grateful for your help :)
Individual Retirement Accounts (LO 5.3) Lyndon, age 24, has a nonworking spouse and earns wages of $36,000 for 2020. He also received rental income of $5,000 and dividend income of $900 for the year. What is the maximum amount Lyndon can deduct for contributions to his and his wife's individual retirement accounts for the 2020 tax year? You may assume that neither taxpayer is an active participant in another qualified retirement plan.
Problem 6-8Unearned Income of Minor Children and Certain Students (LO 6.4) Brian and Kim have a 12-year-old child, Stan. For 2019, Brian and Kim have taxable income of $52,000, and Stan has interest income of $4,500. No election is made to include Stan's income on Brian and Kim's return. Click here to access the income tax rate schedules and the trust and estate tax rate schedules. a. For purposes of the tax on a child's unearned income, calculate Stan's taxable income.$ b. Calculate Stan's net unearned income.$ c. Calculate Stan's earned taxable income.$ d. Calculate Stan's tax for 2019. $
Problem 5-2Self-Employed Health Insurance Deduction (LO 5.2) Serena is a 38-year-old single taxpayer. She operates a small business on the side as a sole proprietorship. Her 2019 Schedule C reports net profits of $15,624. Her employer does not offer health insurance. Serena pays health insurance premiums of $7,545 in 2019. Serena also pays long-term care insurance premiums of $600 in 2019. Calculate Serena's self-employed health care deduction.$
Problem 8-49 (LO 8-1) (Algo) In 2023, Jasmine and Thomas, a married couple, had taxable income of $155,500. If they were to file separate tax returns, Jasmine would have reported taxable income of $145,500 and Thomas would have reported taxable income of $10,000 Use Tax Rate Schedule for reference. What is the couple's marriage penalty or benefit? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar. Marriage benefit Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Problem 6-12 (Algorithmic)The Individual Alternative Minimum Tax (AMT) (LO 6.5) Otto and Monica are married taxpayers who file a joint tax return. For the current tax year, they have AGI of $150,000. They have excess depreciation on real estate of $90,000, which must be added back to AGI to arrive at AMTI. The amount of their mortgage interest expense for the year was $30,000, and they made charitable contributions of $15,000. They have no other itemized deductions. If Otto and Monica's taxable income for the current year is $105,000, determine the amount of their AMTI.$
Problem 7-6Earned Income Credit (LO 7.2) Diane is a single taxpayer who qualifies for the earned income credit. Diane has two qualifying children who are 3 and 5 years old. During 2021, Diane's wages are $18,900 and she receives dividend income of $900. Diane’s 2019 earned income was lower than 2021. Earned Income Credit Phase-Out Ranges Number of Qualifying Children Other than joint filers Joint filers Phaseout Begins Phaseout Ends Phaseout Begins Phaseout Ends None $11,610 $21,430 $17,560 $27,380 1 19,520 42,158 25,470 48,108 2 19,520 47,915 25,470 53,865 3 or more 19,520 51,464 25,470 57,414 Calculate Diane's earned income credit using the EIC table in Appendix B.$fill in the blank 1
Problem 6-19Special Rules for High-Income Taxpayers (LO 6.8) Rachel is single and has wages of $150,000 and dividend income of $90,000. She has no investment expenses. Calculate the amount of the 3.8 percent net investment income tax she must pay.$
Medical Expenses (LO 5.6) In 2019, Margaret and John Murphy (age 66 and 68, respectively) are married taxpayers who file a joint tax return with AGl of $26,100. During the year they incurred the following expenses: Medical insurance premiums $1,300 Premiums on an insurance policy that pays $100 per day for each day Margaret is hospitalized 400 Medical care lodging (two people, one night) 65 Hospital bills 2,100 Doctor bills 850 Dentist bills 200 Prescription drugs and medicines 340 Psychiatric care 350 In addition, they drove 80 miles for medical transportation, and their insurance company reimbursed them $800 for the above expenses. On the following segment of Schedule A of Form 1040, calculate the Murphy's medical expense deduction. If required, round any amount to the nearest dollar. Enter all amounts as positive numbers.